A city in Switzerland, Zug, accepts bitcoins.
people living there can pay fees with BTC. You can pay up to 200 swiss franc (CHF) in bitcoin.

really nice to see this.

the question is: will Zug hold the BTC or change them to fiat.

http://www.luzernerzeitung.ch/nachrichten/zentralschweiz/zg/zug/Im-Zuger-Stadthaus-kann-mit-Bitcoins-bezahlt-werden;art93,729800


EDIT:
More good news from Switzerland.
A cycle messenger in Bern "sells" and delivers food. Customers can pay with BTC.
http://www.btc-echo.de/schnellerteller-akzeptiert-bitcoin/